Categories
Lessons from the lockdown Money

Returning to normal?

I did three things this week that I haven’t done for a long time.

Firstly, I went to the pub for the first time since 15th October. Secondly, I went to the barbers for the first time since 13th October (a 183-day wait for a haircut compared to the 166-day wait between January and July last year). And thirdly I had to get cash out from a cash machine.

This is the first time I’ve had to get any cash out since December. I’ve not had much reason to spend cash though as the only thing I’ve had to buy with cash recently has been the occasional takeaway place that doesn’t take card. However the barber only takes cash and it’s easier to split a group beers bill with cash.

I’ve found all the times I’ve taken out cash over the last couple of years and plotted it into a graph:

The orange dots show each date I’ve taken out cash, whilst the blue line shows the amount averaged by the number of days until I next took out money (I don’t always take out the same amount each time but averaging it should make it comparable). The massive spike in December 2019 is for Christmas meals, because as I said, it’s always easier to sort group events with cash. And that was the last time I had any great need for cash.

Since then, my cash usage has dropped off massively and has been practically non-existent over the last few months. Maybe the cash usage will pick up again as things start to open up again and we can be more social, but maybe the days of using cash are over (other than for occasional beers and haircuts).

Categories
Money

Annual Travelcard, or Pay As You Go…

Just over seven years ago, I moved to London. Before that I had always had houses and jobs that I could either walk or drive between. Now though, I had to get the train every day, and also to pay for it. I started off paying for each journey from my Oyster card top up balance, but in January 2014, I realised that I was topping up a lot and that it might make more sense to get an annual travelcard. The main advantage of a travelcard being that all journeys within the chosen zones would essentially be free, so the more journeys made, the better the saving.

So why is that relevant? Well, I’ve kept a record of every journey I’ve made, and every January I compare how much I would have spent on pay as you go versus how much I paid for the travelcard (plus the extra journeys outside my travelcard zones). Unfortunately I no longer have the exact statistics for the first few years, but in 2017 I saved £246.50 (and I think a few of the earlier years were even bigger savings).

2017 Travelcard2017 PAYG
£1581.70£1828.20

Fast forward to 2018 and I moved house from zone 3 to zone 4. Now, not only was the travelcard cost more, but there were fewer transport options so I was less likely to use public transport. The calculations were more complex because I moved halfway through the year, but I think I ended up spending £96.40 extra by having a travelcard and not making the most of the journeys.

2018 Travelcard2018 PAYG
£1869.90£1773.50

For 2019, I decided to renew my travelcard. Yes, I had lost some money the previous year, but it was complex with moving house, and maybe I would make more journeys this year. And so, in January 2020 I calculated how much I had spent the previous year, and unfortunately found that I overspent by £234 by having a travelcard.

2019 Travelcard2019 PAYG
£2052.80£1818.80

In order to confirm my calculations (there’s daily and weekly PAYG capping I hadn’t taken into account), I decided to do a three month trial of using pay as you go (though obviously on contactless now, rather than having to top up an oyster card) until the end of April 2020. But then COVID and lockdowns came in, so my three month trial ended up becoming a one year trial. With an increased number of days working from home and less travel away from London, it should be clear that PAYG was going to win this year, but by how much? A couple of weeks ago I calculated my travel costs for 2020…

2020 Travelcard2020 PAYG
£2086.80£1354.30

With a £732.50 saving, PAYG was a clear winner for 2020. I imagine it will still be the best option for the rest of this year until things get back to normal again. I’ll review this again next January, but at the moment, I can’t see a travelcard being a sensible option for me, at least until I can make a lot more journeys.

Categories
Discussion Money

Was it worth it?

The other day I received a nice letter from the Students Loans Company (or whatever they’re called these days) reminding me that I now owe £27,056.05 on my student loan.

And it got me thinking.

I spent this money on four years at university and the ability to put the letters “MEng(Hons)” after my name, but what else could I have spent it on? I had a quick look.

  • A second-hand armour plated jaguar (From £25k+VAT). I would love one purely to say that I owned a bullet-proof car. In fact, I might get this one anyway.

  • A meeting with Nick Clegg (£25k/year). This one I will pass on, and not just because it’s an annual fee.

  • A 1 bed house in Manchester (£25k). It’s already been reduced by £22k, but it’s quite possibly the ugliest house I’ve seen. (Does it have any windows?)

  • A lock of Justin Bieber’s hair (£25k). Too late for this one, it was sold last month and no doubt it’ll cost more when it’s back  on the market.

What have I missed? What would/could you have spent this money on?